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The Central Bank of Nigeria (CBN) has scrapped the three free monthly ATM withdrawals for customers using other banks’ ATMs. Effective March 1, 2025, all such transactions will now incur charges. The CBN says the move aims to improve ATM efficiency and encourage digital banking, but customers face increased withdrawal costs.

The Central Bank of Nigeria (CBN) has announced the removal of the three free monthly withdrawals for customers using ATMs of other banks, effective March 1, 2025. Under the new directive, withdrawals from another bank’s ATM will now attract a fee of N100 per N20,000 on-site, while off-site transactions will include an additional surcharge of up to N500. International ATM withdrawals will be charged based on fees imposed by the foreign acquirer.

According to the CBN, this revision, outlined in a circular signed by Acting Director John S. Onojah, is aimed at improving ATM service efficiency and encouraging digital banking. The decision is expected to accelerate ATM deployment nationwide while ensuring financial institutions apply appropriate service charges. However, this move will likely lead to increased withdrawal costs for customers who frequently use ATMs outside their bank’s network. With the implementation date approaching, banks are expected to update their systems and inform customers of the changes.